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Redline Communications Secures $10 Million Credit Facility

TORONTO, Oct. 9, 2012, 2012 (Canada NewsWire via COMTEX) --
-- Financial partnership helps fuel Company growth --
Redline Communications (www.rdlcom.com Group Inc. TSX: RDL), a leading provider of broadband wireless solutions for
machine-to-machine (M2M) communications, today announced that they have
finalized a $10 million credit facility with HSBC Bank Canada ("HSBC")
and have amended their loan agreement maturing in 2019 with the Ontario
Ministry of Economic Development and Innovation ("MEDI"). These new
banking arrangements will provide short and longer term funding to the
Company to allow for continued growth by leveraging working capital
without diluting Company shareholders.

"Our new relationship with HSBC allows us to pursue our growth
strategies," said Eric Melka, Redline's chief executive officer. "This
flexibilty is particularly important in the fast-growing energy market
where our successes have been with multi-million dollar projects where
increased flexibility in working capital is required. We are delighted
to be working with HSBC, the right choice for Redline because of the
good fit with our global business."
Under the new banking arrangements, HSBC will provide a $10 million
revolving demand credit facility at prime plus 1.5 percent. The
availability under the revolving facility is subject to certain
borrowing base calculations based on accounts receivable. The maximum
draw on the revolver, currently $7M, will expand to $10M when fiscal
year reporting supports performance expectations. HSBC will also
provide treasury management solutions for Redline.

The Company's pre-existing arrangement with MEDI has been amended to
give HSBC a first ranking on accounts receivable and forgive certain
interest charges in exchange for a $750 thousand principle repayment by
the Company at closing and a $500 thousand principle repayment in July
2014. Interest on the MEDI loan is at 4.15 percent.

"Our partnership with MEDI is strong and we very much appreciate their
guidance, assistance and commitment to technology," added Melka. "Their
program and team have allowed us to accelerate our product development
activities through what was a pivotal turnaround period for the Company
and we thank them for their continued support."
About Redline Communications
Redline Communications (www.rdlcom.com) is the innovator of Virtual FiberTM, a specialized broadband wireless
solution used to cost-effectively deploy and extend secure networks,
enable M2M applications, connect digital oil fields and smart grids,
facilitate and enhance public safety networks, and bring Internet
access wherever and whenever it's needed - regardless of terrain or how
remote. For more than a decade Redline has delivered powerful,
versatile and reliable wireless solutions to governments, militaries,
oil and gas companies and telecom service providers through its global
network of certified partners. For more information visit www.rdlcom.com.

Forward Looking Statements
Certain statements in this release may constitute forward-looking
statements or forward-looking information within the meaning of
applicable securities laws. In some cases, forward-looking statements
can be identified by terms such as "could", "expect", "may", "will",
"anticipate", "believe", "intend", "estimate", "plan", "potential",
"project" or other expressions concerning matters that are not
historical facts. Readers are cautioned not to place undue reliance
upon any such forward-looking statements.

Such forward-looking statements are not promises or guarantees of future
performance and involve both known and unknown risks and uncertainties
that may cause the actual results, performance, achievements or
developments of Redline to differ materially from the results,
performance, achievements or developments expressed or implied by such
forward-looking statements. Forward-looking statements, by their
nature, are based on certain assumptions regarding expected growth,
management's current plans, estimates, projections, beliefs, opinions
and business prospects and opportunities (collectively, the
"Assumptions"). While the Company considers these Assumptions to be
reasonable, based on the information currently available, they may
prove to be incorrect.

Many risks, uncertainties and other factors could cause the actual
results of Redline to differ materially from the results, performance,
achievements or developments expressed or implied by such
forward-looking statements. These risks, uncertainties and other
factors include but are not limited to the following: significant
competition, competitive pricing practices, cautious capital spending
by customers, industry consolidations, rapidly changing technologies,
evolving industry standards, frequent new product introductions, short
product life cycles and other trends and industry characteristics
affecting the telecommunications industry; any material, adverse
affects on Redline's performance if its expectations regarding market
demand for particular products prove to be wrong; any negative
developments associated with Redline's suppliers and contract
manufacturing agreements including the Company's reliance on certain
suppliers for key components; potential penalties, damages or cancelled
customer contracts from failure to meet delivery and installation
deadlines and any defects or errors in Redline's current or planned
products; fluctuations in foreign currency exchange rates; potential
higher operational and financial risks associated with Redline's
efforts to expand internationally; a failure to protect Redline's
intellectual property rights, or any adverse judgments or settlements
arising out of disputes regarding intellectual property; changes in
regulation of the wireless industry or other aspects of the industry;
any failure to successfully operate or integrate strategic
acquisitions, or failure to consummate or succeed with strategic
alliances; and Redline's potential inability to attract or retain the
personnel necessary to achieve its business objectives or to maintain
an effective risk management strategy (collectively, the "Risks"). For
additional information on these Risks, see Redline's most recently
filed Annual Information Form ("AIF") and Annual MD&A, which are
available on SEDAR at www.sedar.com and on the Company's website at www.redlinecommunications.com. Redline assumes no obligation to update or revise any forward-looking
statements or forward-looking information, whether as a result of new
information, future events or otherwise, except as expressly required
by law. All forward looking statements contained in this release are
expressly qualified in their entirety by this cautionary statement.